Dog Up! Franks is looking at a new sausage system with an installed cost of $480,000. Thesausage
Fantastic news! We've Found the answer you've been seeking!
Question:
Dog Up! Franks is looking at a new sausage system with an installed cost of $480,000. Thesausage system is classified as seven-year equipment under MACRS. At the end of the five-yearproject,the sausage system can be scrapped for $70,000. The sausage system will save the firm $160,000 per year in pretax operating costs, and the system requires an initial investment in net working capital of $29,000. If the tax rate is 34 percent and the discount rate is 10 percent, what is the NPV of this project? |
Posted Date: